By Calum Mair – For ConstructionPROS.com – March 14, 2024
The construction industry is looking to rebound in 2025. To do so, suppliers, builders, and contractors alike need to know what’s in store for the coming year.
At the halfway point of 2024, U.S. construction spending was down roughly $1.7 billion from the previous year. While new construction projects are expected to grow by 8.5% in 2025, there are still several uncertainties for the upcoming year that could create challenges for businesses in the construction industry.
Calum Mair, commercial director of North America for Excavator Parts Direct (EPD), an aftermarket parts and components seller for construction, agricultural, and industrial machinery, has forecasted five key challenges the construction industry could face in the coming year and provided insights on how to avoid them.
1. Tariffs Could Lead to an Increase in Construction Input Prices
During President Donald Trump’s 2024 presidential campaign, he asserted he intended to impose a tariff of 60% on goods from China and a tariff of up to 20% on goods from other countries. If these tariffs are imposed, prices for imported materials and resources will increase through suppliers to the customer.
Mair said, “Proposed tariffs on imported materials could significantly raise construction input costs, impacting project budgets. To mitigate this, firms should prioritize sourcing materials domestically or from countries with lower tariff rates. Additionally, adopting alternative materials and optimizing resource usage can help offset cost increases. By planning ahead and diversifying supply chains, contractors can reduce the financial burden on projects and clients.”
2. Supply Chain Bottlenecks Could Lead to Longer Wait Times and Higher Prices on Imported Materials
With more stringent tariffs expected to be placed on China —a leading source of U.S. construction materials…